Provident Fund Basics To Start - Doc Download

Hello friends,I am new to HR functions. In my previous organisation which was 80 years of existence all the rules and regulations were set. So all i had to do was to follow the system. Now here i m joint recently and there was no HR in here. I have to start many practices. It is a tough time. CiteHR is of immense help during all this 2 months. I thank all the memebers. This is the information about PF which is very basic. Hope it is useful to understand the concept.Thank youRegardsPari
27th June 2008 From India, Mumbai

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Knowledge.doc (33.0 KB, 2273 views)

Hi Pari,
Your posting has been a great help. Just a question, In our organization, we have just crossed the number of 20 employees. When does the PF deduction gets into effect ? And if we don't want to deduct PF for employees earning more than Rs 6500/-, who gets to decide on that matter? Employee or the Employer?
Kindly help me here.
Thanks & Regards
Khyati
29th June 2008 From India, Pune

Hi Khyati,PF deductuin starts from the months salary in which organisation attains the figure of 20 employees on the payroll.And as for dedn / non dedn above the statutory limit of Rs.6,500/- it is Management decision. Generally as a staff welfare approach and aware Human Resources effort employers contribute @ 12% on entire amount of (basic + DA).However, now a days it is an increased trend amongst the employees to not subscribe for PF due to reducing value of money and their need to have cash in hand. Depending upon your Management decision, HR Policy wrt CTC - spl. allowance, you can take undertaking from employee stating only mandatory PF to be deducted and rest of the amount to be given to him in salary by way of special allowance. It will be takable in the hands of the employee.Hope this clears your doubt.Thank you,Regards,Pari
30th June 2008 From India, Mumbai

Hi Pari
Your compilation about all info on PF has been very helpful to me. I too have moved from a well sturctured MNC to a small startup unit. Earlier having handled Employee relations on a larger scale, I was finding handling payroll single handedly a little tough. Your doc has solved a lot of ambiguities for me. Thank you so much.
And please keep posting.
Cheers
30th June 2008 From India, Pune

Hi,
This is Usha and I work for a software development and consulting company. I had a chance to go through the positings on PF and all are very informative. Thanks a bunch to everyone who provided the informtion.
I have question. We recently crossed 20 employees and most of our employees salary crossed 6,500/- gross. only 3-4 having the salary below 6,500/- gross a month. Still, we liable for PF and do we need to register ourself?
If employees do not wish to participate in PF and would want to exempt, is it posible?
For information, our's is 6 year old company.
Kindly give some input on this..
Thanks
usha
8th July 2008 From India, Madanapalle

Good post ................ But small request now i am working in jammu & Kashmir so please send the jammu& kashmir pf act
20th July 2012 From India, Delhi